"Apple to Produce All iPhone 17 Units in India... Spotlight on Domestic Small- and Mid-Cap Stocks" [Click eStock]

"Attention Needed for Jahwa Electronics, Elentec, Dreamtech, Seoyon E-Hwa, Hwaseung, and Woosu AMS"

With expectations that Apple's iPhone 17 models will be produced in India, analysts in the securities industry have suggested that attention should be paid to domestic small- and mid-cap stocks that have entered the Indian market.

On the 27th, Kwon Myungjun, a researcher at Yuanta Securities, stated, "It is important to focus on companies that have production lines in India and have a track record of supplying to Samsung Electronics and Hyundai Motor Group locally." He cited Jahwa Electronics, Elentec, and Dreamtech in the smartphone sector, as well as Seoyon E-Hwa, Hwaseung, and Woosu AMS in the automotive parts sector, as related companies.

On the 19th, Bloomberg reported that Apple will produce all models of its next-generation iPhone 17 in India. This marks the first time Apple will manufacture even the units destined for the U.S. market in India rather than China. In addition to Apple, global companies such as Micron, AMD, Google, and Amazon have either entered the Indian market or plan to expand their investments, while domestic companies like Samsung Electronics and Hyundai Motor Group are also expected to increase their investments.

Regarding Apple's focus on India, researcher Kwon explained, "India has a population of over 1.45 billion, making it the world's most populous country since 2022 according to the United Nations, surpassing China. The average age is low, resulting in a large working-age population, and low labor costs are also an advantage."

He continued, "Since Prime Minister Modi took office in 2014, India has been pursuing various policies to foster manufacturing, aiming to become a global manufacturing hub. The PLI (Production-Linked Incentive) scheme, which applies to 14 key sectors including electronics, automobiles, semiconductors, and pharmaceuticals, is a representative example. If companies achieve targets such as investment and sales, a portion of the increase in sales is returned in cash."

Kwon added, "In the four years since the COVID-19 pandemic, India's average economic growth rate has been 8.2%, surpassing that of China. Due to the country's significant wealth gap, affluent classes tend to consume luxury goods to display their wealth and social status. Therefore, there is a high possibility that preference will shift from mass-market products to premium products."

Furthermore, Kwon noted, "Due to U.S.-China relations and tariff policies, companies are increasingly considering relocating their production bases. In particular, if U.S.-China relations worsen, the need for India as an alternative will grow, further strengthening the rationale for investing in India."